Nvidia at $4 trillion? Bank of America: We'll raise you to almost $5 trillion

Nvidia has been Bank of America’s top pick in the semiconductor industry, and after its fourth-quarter earnings report, it’s staying that way.

Earlier we flagged Dan Ives’ call that Nvidia would soon reach $4 trillion in market cap. Bank of America’s team is even more ambitious: their new $200 price target (up $10) implies that the company’s stock market value would approach $5 trillion (around $4.88 trillion, to be pseudo-precise).

Analyst Vivek Arya added that the chip designer’s better-than-expected fourth-quarter results came in the face of multiple headwinds, including the emergence of DeepSeek, getting its Blackwell ramp up and running, and curbs on exports to China.

(Note: the emergence of DeepSeek was something that entered the market consciousness very late in Nvidia’s Q4, so tough to really call that a stiff headwind!)

The relatively lackluster market reaction to Nvidia’s results so far is a function of its relatively small beat on Q1 revenue expectations, softness in its margins, some competitive pressures from Broadcom, and AI fatigue.

“We understand the desire to diversify portfolios away from AI/cloud, but we believe this underappreciates the solid (and global) pace of AI investments and NVDA's compelling valuation,” he concluded. “We expect NVDA to re-energize as excitement builds for its flagship GTC tradeshow in mid-March.”